Average prices of dairy products had their biggest gain since June 1 in Fonterra's latest auction amid signs investors are becoming more optimistic about the outlook for commodities.
The GDT-TWI Price Index rose 2.6 per cent, according to the latest results posted on the globalDairyTrade auction website. The average winning price rose to US$3,617 a metric tonne. Six of the seven products on offer rose in the latest sale.
Speculators increased bets on rising commodity prices to a seven-week high last week, according to Commodity Futures Trading Commission figures, while the Standard & Poor's GSCI Index of 24 raw materials has climbed 12 per cent since Sept. 30, Bloomberg reported.
Whole milk powder rose 2.4 per cent to US$3,574 a tonne in the latest sale while skim milk powder gained 1.7 per cent to US$3,354. Anhydrous milk fat climbed 8 per cent to US$3,571 a tonne and milk protein concentrate gained 11.3 per cent to US$6,247 a tonne.
Rennet casein fell 9.7 per cent to US$8,420 a tonne. Butter milk powder rose 3.6 per cent to US$3,039 a tonne and cheddar rose 3.7 per cent to US$3,518 a tonne.
